Municipal incorporation occurs when such municipalities become self-governing entities under the laws of the state or province in which they are located. Often, this event is marked by the award or declaration of a municipal charter.

Today the process for granting charters is determined by the type of government of the state in question. In monarchies, charters are still often a royal charter given by the Crown or the state authorities acting on behalf of the Crown. In federations, the granting of charters may be within the jurisdiction of the lower level of government such as a state or province.

In Brazil, municipal corporations are called municípios and are created by means of local legislation at the state level, or after passing a referendum vote of the affected population. All municipal corporations must also abide by an organic municipal law which is passed and amended (when needed) at the municipal level.

In Germany, municipal corporations existed since antiquity and through medieval times, until they became out of favour during the absolutism. In order to strengthen the public spirit, the city law of Prussia dated 19 November 1808 picked up this concept. It is the basis of today's municipal law.

The Municipal Corporation consists of members elected from the wards of the city. The Mayor and Deputy Mayor are elected by the public. A Municipal Commissioner, who is from the Indian Administrative Service is appointed to head the administrative staff of the Municipal Corporation, implement the decisions of the Corporation and prepare its annual budget.

The Municipal Corporation is responsible for roads, public transportation, water supply, records of births and deaths (delegated from central government Births and Deaths Registration Act), sanitation that includes waste management, sewage, drainage and flood control, public safety services like fire and ambulance services, gardens and maintenance of buildings. The sources of income of the Corporation are property tax, entertainment tax, octroi (now abolished from many cities) and usage fees for utilities.

From the beginning of American colonial rule, Philippines cities were formally established through laws enacted by the various national legislatures in the country. The Philippine Commission gave the city of Manila its charter in 1901, while the city of Baguio was established by the Philippine Assembly which was composed by elected members instead of appointed ones. During the Commonwealth era, the National Assembly established an additional ten cities. Since achieving independence from the United States in 1946 the Philippine Congress has established 124 more cities (as of September 2007), the majority of which required the holding of a plebiscite within the proposed city's jurisdiction to ratify the city's charter.

In the United States, such municipal corporations are established by charters that are granted either directly by a state legislature by means of local legislation, or indirectly under a general municipal corporation law, usually after the proposed charter has passed a referendum vote of the affected population.